finc415 hw greece
Ryan Flanagan
1. Since April 2013 to the present what has happened to the value of the Yen relative to the USD? See if you can find some more recent articles on Japan's effort to devalue the Yen. The value of the Yen has decreased. The article said that "The Treasury will pressure Japan to adhere to international commitments and to remain oriented towards meeting respective domestic objectives using domestic instruments and to refrain from competitive devaluation and targeting its exchange rate for competitive purposes”. With the value of the Yen going down, is this on purpose or by freak accident. Japan is smart about this and has a specific strategy. In Japan, the BoJ is buying almost as many of its bonds (about $76 billion per month) as the Fed is buying with QE ($85 billion per month). This is resulting in more bang for your yen/more QE per capita. Here is where it gets sneaky. Expectations that the BoJ will keep expanding its balance sheet have led investors to sell yen. Japan knows it has to act carefully to equal out its domestic policy goals with potential foreign objections.
2. When you are done run a web search. What is the current situation in Greece? Are there other countries in Europe experiencing similar difficulties? How could Europe get themselves into this position? Greece is not doing well. Some people want to continue using the euro which a currency provided by the European Central Bank while others want to return to the drachma. The drachma is the fiat currency previously issued by the Greek central bank. This is causing a major uproar in Greece. Politically they are also crumbling. The leaders are persistent with rejecting economic policies that would keep Greece in the euro zone. These leaders are doing nothing to actually help the situation. Argentina is also going through a similar struggle financially. It has defaulted on its debt. With a low credit rating, there was no way this country could continue to operate and Greece
1. Since April 2013 to the present what has happened to the value of the Yen relative to the USD? See if you can find some more recent articles on Japan's effort to devalue the Yen. The value of the Yen has decreased. The article said that "The Treasury will pressure Japan to adhere to international commitments and to remain oriented towards meeting respective domestic objectives using domestic instruments and to refrain from competitive devaluation and targeting its exchange rate for competitive purposes”. With the value of the Yen going down, is this on purpose or by freak accident. Japan is smart about this and has a specific strategy. In Japan, the BoJ is buying almost as many of its bonds (about $76 billion per month) as the Fed is buying with QE ($85 billion per month). This is resulting in more bang for your yen/more QE per capita. Here is where it gets sneaky. Expectations that the BoJ will keep expanding its balance sheet have led investors to sell yen. Japan knows it has to act carefully to equal out its domestic policy goals with potential foreign objections.
2. When you are done run a web search. What is the current situation in Greece? Are there other countries in Europe experiencing similar difficulties? How could Europe get themselves into this position? Greece is not doing well. Some people want to continue using the euro which a currency provided by the European Central Bank while others want to return to the drachma. The drachma is the fiat currency previously issued by the Greek central bank. This is causing a major uproar in Greece. Politically they are also crumbling. The leaders are persistent with rejecting economic policies that would keep Greece in the euro zone. These leaders are doing nothing to actually help the situation. Argentina is also going through a similar struggle financially. It has defaulted on its debt. With a low credit rating, there was no way this country could continue to operate and Greece